The state treasurer Tim Nicholls will hand down the Qld 2014/15 budget this afternoon, he has warned of an increase in the deficit.

Asset sales are also expected feature highly in the budget, with ports firmly in the firing line.

A hike in electricity prices, especially for irrigators has been foreshadowed and pensioners are likely to see a cut in power subsidies.

One of the major growth industries in the last 10 years in Queensland, has been the gas industry.

Chief Operating officer for eastern Australia with the Australian Petroleum Production & Exploration Association, Paul Fennelly, says while they support the need to tighten the reins, there are some no-go areas for the gas industry.

"What we are looking for is no imposition of royalties on the gas industry, we are saying consistently to the government 'we are the future of Queensland'.

"We are looking at a situation where our royalties, our contribution to the state will increase from $60 million today, because we are not exporting yet, by 2017 our contribution to the state alone will be $400 million and by 2035, that will grow to $22 billion.

"So what we are stressing to the government is, you have got to develop and support this industry."

Mr Fennelly says the industry is not globally competitive yet and a lot of the structures in Queensland need to be changed, especially the cost of producing gas.